Glossary of Important Terms
Gifts designated as unrestricted. These gifts provide renewable funds that enable the college to place resources where they are most needed or where opportunities are greatest. Common uses of unrestricted funds include student aid, faculty support, emergency renovations, academic initiatives, research assistance, and the purchase of books, collections, supplies, and equipment.
Restricted gifts that are spent over one or more years. A minimum of $1,000 is required to open such a fund.
An individual or organization that receives an interest in property or funds from an estate, a trust, or a contract, such as a life insurance policy or employee benefit plan.
A transfer, by will, of such personal assets as cash, securities (stocks), or other tangible property.
Charitable Gift Annuity
A contract between the donor and the Brooklyn College Foundation that provides benefits to both. A gift of $10,000 or more to the foundation will provide a guaranteed income for life for the donor and/or a second person (when both are at least sixty years of age) and a charitable income tax deduction.
Charitable Remainder Trust
An arrangement that provides a lifetime income and a charitable income tax deduction. The donor selects the payout rate, usually between 5 and 7 percent. The higher the payout rate, the lower the charitable income tax deduction. The donor receives income every year for life or for a predetermined time period.
An amendment to a will, made in a separate instrument and with the same formalities as the will itself.
A gift that will not be available for the Brooklyn College Foundation's use until a future date, although the transaction establishing the gift occurs in the present.
An alumnus, alumna, or friend who has made a financial gift to the Brooklyn College Foundation.
The practice of publicly thanking donors for their generous gifts. Examples include acknowledgment by card or letter at the time a gift is received, personal or public expressions of appreciation directly to donors, published lists of contributors, and such recognition clubs as the Legacy Society.
Fair Market Value
The current value of an asset if sold on the open market. Federal tax laws directly address the manner of determining and reporting fair market value.
Form 990 is the IRS form that all public charities, including the Brooklyn College Foundation, use to report information about their finances and operations to the federal government. It is available for public inspection and, for some donors, serves as the primary source of information about a particular organization.
A contract between the foundation and a donor that specifies the terms of the donor's gift and the foundation's ability to meet the stated terms.
Gift-In-Kind (in-kind contribution)
Donation of nonmonetary items of tangible personal property, such as art, collectibles, books, equipment, automobiles, inventory, and other physical assets or materials that represent value to the college. The Internal Revenue Service does not consider such unreimbursed expenses as food, professional or personal services, and limited use of private property as gifts-in-kind.
A financial allocation from a foundation, corporation, or government agency to support a program or institution.
A group of donors who have made a commitment to the Brooklyn College Foundation through their estate plans.
Letter of Intent
A letter that states a prospective donor's intention to make a specific gift or bequest.
Gifts made with company or corporate funds that match gifts made by the company's eligible employees to nonprofit organizations.
Memorial or Tribute
A donor may make a memorial gift to honor a loved one, friend, or business associate. A gift in tribute may be made to honor an individual on a birthday, anniversary, retirement, or other occasion of celebration.
A fund, which may be established with a gift of $25,000 or more. The fund remains in perpetuity for the benefit of the students, faculty, or facilities of Brooklyn College. Named funds may provide scholarships, prizes, or awards as well as general support.
The integration of personal, financial, and estate planning concepts with an individual donor's plans for lifetime giving.
A signed and dated legal commitment to make a gift over a specified period, payable according to terms set by the donor and agreed to by the Brooklyn College Foundation.
The time span over which pledges may be paid, usually five years or less.
A gift with a specified purpose clearly stated by the donor.
A permanently endowed fund with a minimum value of $50,000 given by an individual or a group.
A comprehensive, personalized asset management plan that accomplishes specific purposes for the maker of the trust and the trust's beneficiaries. The donor may serve as the trustee.
A gift that has no restrictions on its use.
A legally executed instrument by which a person makes disposition of his or her property to take effect at their death.